Fintech is the innovative use of technology in designing and delivering financial products and services across lending, investment management and payment platforms. Fintech companies utilize technology, ranging from widely available smart phones for mobile banking, payment apps and investing services, to complex software applications such as big data and artificial intelligence, to make financial services more accessible to the general population.
Forces Shaping Financial Technology
The online world is leading to the dominance of online, cashless transactions. There is a shift in the balance of power from banks and other financial services to those who own the customer experience. Insurance products are being tailor-made to customer needs and improvement in transaction processes are pushing traditional financial services companies to enter into partnerships to provide Fintech solutions.
How Fintech Matters?
The rise of Fintech has transformed the ways in which companies do business. From crowd sourcing to mobile payments, the average entrepreneur is spoilt for business opportunities and fund-raising options. Crowdsourcing makes it possible for people with big ideas to get funding quickly from anywhere. Thanks to the internet, entrepreneurs can pitch directly to the world and see the funds roll within a matter of weeks.
Fintech has changed the customer. The rise of the smart phone and an ‘always online’ culture has led to a proliferation of fintech services and apps that allow people to access information and data in the split of a second.
Financial Technology Trends
Key technologies, from blockchain and AI to design thinking and the cloud, are changing the financial landscape beyond recognition.
Digital Transformation
Consumer expectations from banks have undergone a sea-change, thanks to their encounter with non-banking industries such as retail and communication. As customers become increasingly tech-savvy, banks are developing their digital infrastructure to support new modes of engagement with their customers.
Artificial Intelligence (AI)
Artificial intelligence (AI) has immense applications in areas such as sales, investments and wealth management. AI algorithms are being used to predict market movements, make credit-underwriting decisions, and detect frauds and regulatory compliance.
Design Thinking
Design thinking is making waves in the field of financial technology, with a special focus on the customer-first. Augmented Reality (AR) and Virtual Reality (VR) are also set to enhance the customer experience.
To conclude, the marriage of Finance and Technology embodies the potential for bigger things in the world of finance and business, and the world at large.
Comments
Log in or sign up to join the conversation.